He knows when you've been naughty and when you've been nice - and he'll kill you either way. That's how dangerous Lee Emerson (Ian McShane) really is. A former petty criminal who was raped by carol-singing jailers, Emerson escaped and took his pain out on 18 (!) unsuspecting families while dressed like Father Christmas. "You know the difference between that Santa Claus and me? He only comes once a year," Emerson says while threatening to rape not the wife, but the husband of one such family.

Alas, Emerson was eventually turned over to Briarcliff, which is once again celebrating the holidays now that the Grinch Sister Jude (Jessica Lange) is no longer in charge. She had banned the holiday after Emerson killed an orderly wearing a Santa cap and beard in the past. Sister Mary Eunice (Lily Rabe), however, doesn't actually care about the holidays. She just wants to unleash Emerson on the unsuspecting Frank (Fredric Lehne), the security guard who's fraught with guilt over accidentally shooting Grace (Lizzie Brochere). Frank eventually dies, but at the hands of Mary Eunice, who slits his throat in front of Emerson's cell.

But Emerson does eventually get in on the mayhem. After Arden (James Cromwell) tricks Jude into returning to Briarcliff under the guise of wanting to rid the evil within Mary Eunice, Emerson gets his revenge on Jude by beating her into submission. Fortunately, before Emerson can show her his, ahem, candy cane, she stabs him in the neck. But will she ever make it out of Briarcliff alive knowing Arden had betrayed her and the devil is still in charge?

Poor Lana (Sarah Paulson) was also held captive within Briarcliff, finally making her way to a phone to call the police on Dr. Thredson (Zachary Quinto), only to discover that he's in the room waiting. He reveals that he's burned all evidence of Bloody Face, but he'll start anew with Lana's body! Fortunately, Kit (Evan Peters) saves the day by knocking Thredson out, but he does prevent Lana from killing Thredson lest they have no proof that Kit isn't actually Bloody Face. (Too bad future Bloody Face is probably growing inside of Lana considering she was throwing up. Morning sickness, much? Maybe our theory isn't so sick after all!)

Oh, and who can forget Arden wheeling Grace's body out through the death chute only to come face-to-face with the aliens, who then take her body? No really, can we forget that part?

Do you think Thredson will really be discovered for who he is? Will Lana, Jude and Kit make it out of Briarcliff alive? Hit the comments with your thoughts!